Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

IBM PC Unit Sold to Lenovo with Huge Deficit
Dec 31, 2004
 Printable format
 Email this Article
 Search

International Business Machines Corp.'s (IBM) PC unit piled up nearly U.S. $1 billion in cumulative losses in recent years, the company said in a filing that detailed the planned sale of the business to China's Lenovo Group.

The merger of IBM's PC business into Lenovo creates the world's third-largest personal computer maker. The merged company will be headquartered in Armonk, NY, U.S., where IBM is currently based.

IBM revealed in a regulatory filing previously undisclosed details of the finances of its money-losing PC business, which showed an accumulated deficit of $973 million as of June 30, 2004.

"The (PC) business has a history of recurring losses, negative working capital and an accumulated deficit. The ability to settle obligations as they come due is dependent on IBM funding the operations on an ongoing basis," IBM said.

Earlier in December, IBM agreed to sell its PC business to Lenovo of Beijing for $1.25 billion, plus the assumption of debt, marking the U.S. company's retreat from an industry it helped pioneer in 1981.

For the first 6 months of 2004, IBM reported net revenue for the PC division businesses sold to Lenovo of $5.2 billion and a loss of $139 million. Had IBM included the cost of deducting employee stock option expenses -- as new accounting rules in place next year would require it to do -- the company would have reported a net loss of $149 million, it said.

The filing showed IBM reported net losses at its PC business in each of the preceding 3 years, with a net loss of $397 million for 2001 -- the bottom of the PC industry slump -- improving to a net loss of $171 million in 2002.

The PC business suffered mounting losses again in 2003 of $258 million and lost money at a similar rate in the first half of 2004.

IBM disclosed that more than 50 percent of its products are manufactured through an unspecified joint venture -- an apparent reference to IBM's venture with Great Wall Technology to build desktop and notebook computers in Shenzhen, China. (Reuters)

Back to Daily News

 

Daily News

...........................................................

Oct 21, 2014: AHRI Annual Meeting Registration Remains Open

Oct 20, 2014: Electrolux 3Q Operating Income up 29%

Oct 17, 2014: Whirlpool completes purchase of majority interest in Indesit

Oct 17, 2014: Corrected: AHRI Annual Meeting Registration Remains Open

Oct 17, 2014: Walmart will moderate brick-and-mortar growth and increase capital spending on e-commerce capabilities

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014
May 2014: Appliance Magazine Market Insight: March 2014
April 2014: Appliance Magazine Market Insight: February 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows